VAT Services

World Class Business Services For Companies And Individual’s Across UAE

VAT Registration in UAE for Pakistani Entrepreneurs

Vat registration in the uae services
 

UAE introduced Value Added Tax (VAT) on 1st January 2018 with 5% rate on most goods and services. Pakistani investors and business owners in the UAE should register for VAT to recover certain costs related to this tax and to comply with local laws.

 

We get many questions about VAT. Below are some of the most common questions we get from our clients based in Pakistan and worldwide.

 

VAT is an indirect tax on goods and services, like consumption tax in many countries. It’s a comprehensive, multi-stage consumption tax that applies throughout the supply chain and is collected by registered businesses on behalf of the government. Ultimately the VAT burden falls on the consumer, who is the end user, and not on the businesses themselves.

Frequently Asked Questions

Value Added Tax (VAT) is an indirect tax on consumption of goods and services. It works similar to consumption taxes in other countries, collected throughout the supply chain by VAT registered businesses on behalf of the UAE government. In the end, the VAT burden is paid by the final consumer — not the businesses themselves.

UAE implemented VAT to diversify its revenue sources and reduce dependence on oil income. The tax will fund better public services and national infrastructure projects, creating a sustainable economic future for the country.

Financial Impact

  • Your pricing may need to be adjusted for non-recoverable VAT elements
  • It may impact working capital and cash flows, especially if you work on long credit cycles or have zero-rated transactions
  • Improper VAT planning can create unrecoverable liabilities, especially in group structures

Operational Impact

  • Contracts with suppliers and customers will need to be reviewed and amended to reflect VAT
  • IT systems will need to be updated to capture correct VAT records and reporting data
  • Your sales and procurement teams will need to be trained on VAT handling

Compliance Impact

  • Mandatory VAT registration based on turnover thresholds
  • Timely submission of VAT returns to FTA
  • Maintenance of detailed accounting records
  • Be ready for FTA audits to avoid penalties or legal issues

Flyingcolour® assists Pakistani entrepreneurs with all types of company registrations in the United Arab Emirates. We provide expert support for Mainland, Free Zone, and Offshore company setups across all Emirates of the UAE. We also assist in opening bank accounts with all major local banks and work closely with government departments and financial institutions.